Cache Logistics DPU down 13.7% in 3Q

Margin pressure continues amidst weak property sector.

Cache Logistics Trust (CACHE) reported its 3Q16 results which fell short of expectations, said OCBC Investment Research.

Gross revenue rose 21.2% yoy to S$28.0m, but NPI increased at a slower pace of 17.5% due to continued margin pressure for its Singapore properties.

DPU slipped 13.7% YoY to 1.847S cents, attributable to higher finance costs, an enlarged unit base and a one-off capital distribution of $1.5m (0.192 S cents/unit) in 3Q15 arising from the sales proceeds of an asset disposal.

The research firm noted that even if it excludes the one-off capital distribution, CACHE’s adjusted DPU still fell 5.2% YoY in 3Q16.

On a 9M16 basis, CACHE’s gross revenue and NPI jumped 27.9% and 17.0% to S$84.0m and S$66.7m, respectively, with the latter forming 71.2% of OCBC Investment Research's FY16 forecast.

DPU of 5.875 S cents represented a decline of 8.6% (-5.9% if OCBC Investment Research excludes capital distributions) and constituted 72.3% of the research firm's full-year projection.